Public Equity

Navis Yield Fund – Cash Flow and Dividend Focused

The Yield Fund shares many of the underlying investment philosophies of Navigator, but invests in cash generative, dividend paying companies that we believe have capital appreciation upside. The Yield Fund was launched in late 2011 to take advantage of a distinctive aspect of our region – many strong and growing companies have strong balance sheets, often net cash, and their business models are often designed to provide steady dividend payouts to suit the needs of controlling shareholders.

The Yield Fund seeks a focused portfolio of ~20 core positions in companies on which we have conducted in-depth research, constructed proprietary financial and return models and have knowledge of and confidence in management.

The Yield Fund invests in companies with the following characteristics:

competitively well positioned

cash generative

conservatively financed (often net cash)

a record of high dividend yields

business models not dependent on strong global growth or developed market demand

low beta portfolio

in Navis' core geographies of Southeast Asia and Hong Kong/China

There is an annual option for investors to receive dividends received by the fund in cash.

Performance

Since inception in October 2011 the Yield Fund has increased by 70%, outperforming its Yield peers which increased by 57% over the same period (as of 30 June 2017).

Fund Structure and Terms

The Fund has a Cayman Islands domiciled, standalone structure. There is a Manager's incentive fee subject to high water mark and minimum performance trigger. The fund is open ended with monthly net asset valuations and subscriptions. Redemptions are quarterly and subject to 60 days notice, with some prudential limitations. There are no entry or exit fees.